Manufacturers are committed to expanding their production next year to accommodate expected increasing demand driven by the country’s economic recovery, according to the latest study by exhibition organiser Reed Tradex.
The survey of 313 heavy-industry manufacturers who joined the machine tools event Metalex 2014 held on November 19-22 at Bangkok International Trade and Exhibition Centre indicates 78% of manufacturers plan to expand production capacity next year, while 20% will maintain production and only 2% will lower production.
However, most executives remain concerned about Thailand’s political situation and economic prospects as well as the global economy.
They urged the government to continue launching economic stimulus packages and offer more incentives to promote foreign direct investment.
Some executives said the government should call a new election as soon as possible.
Reed Tradex executive director Preecha Sananvatananont said the industry sector was expected to perform well next year because Thailand is the hub of heavy industry both for domestic consumption and exports.
Trade exhibition events and business matching attract investors and executives from other countries, especially Japan, to visit Thailand. They also generate value for other sectors such as shopping and tourism.
Mr Preecha cited statistics from Thailand Convention and Exhibition Bureau (TCEB) that an estimated 200,885 investors and executives have attended exhibition and business-matching events this year, up 5% from last year, creating income of US$191.85 million.
Reed Tradex holds two heavy-industry expos in Bangkok each year — Manufacturing Expo in June and Metalex in November. Both expos are endorsed by TCEB.
The latest Metalex featured 500 manufacturers exhibiting their new technology and innovations, attracting 76,000 visitors.
According to the Customs Department, the value of imported machine tools and mold/die equipment amounted to 88.59 billion baht in the first 10 months, up 6.67% year-on-year.
Machinery from Japan accounts for 58% of total imports, followed by China at 14% and Taiwan at 8%.